Indonesian Political, Business & Finance News

Home Affairs Minister's Response on Option to Cut Ministers' Salaries

| Source: TEMPO_ID Translated from Indonesian | Economy

Threats of disrupted global fuel oil (BBM) supplies due to conflicts in the Middle East are prompting the government to prepare anticipatory measures. One option is budget savings, including the issue of ministers’ salary cuts. Home Affairs Minister (Mendagri) Muhammad Tito Karnavian emphasised that he would follow President Prabowo Subianto’s decision regarding the policy. “As a state apparatus, I am certainly loyal to the President’s decision,” he said when contacted on Monday, 23 March 2026.

Concerns over global energy supplies are rising with tensions in the Middle East region. Disruptions in distribution there could trigger price increases and pressure availability of BBM, including for importer countries like Indonesia. This situation could impact the energy subsidy burden and pressure on the state revenue and expenditure budget (APBN).

The government is beginning to review efficiency measures. On 17 March 2026, a policy plan emerged for salary cuts for ministers in the Merah Putih Cabinet. State Secretary Minister Prasetyo Hadi stated that the policy is still in the study phase and not yet a final decision.

President Prabowo had previously emphasised the importance of efficiency from the outset. In the Full Cabinet Plenary Session at the State Palace on Friday, 13 March 2026, the President asked his subordinates to prepare for possible economic pressures, even though the situation has not yet entered a crisis phase.

Prabowo cited Pakistan, which has implemented extreme or critical measures, such as reducing working days to salary cuts for officials. “This is just for comparison. So, they consider this already critical, like during the COVID-19 era,” Prabowo said.

Responses to this issue are emerging from cabinet members. Human Rights (HAM) Minister Natalius Pigai stated his readiness if salary cuts are truly implemented.

The statement was conveyed by Pigai through his X social media account, @NataliusPigai2, on Thursday, 19 March 2026. He also gave permission to Tempo to quote his statement. “Even if I do not receive a salary as a minister, I am willing,” Pigai said on Friday, 20 March 2026.

According to him, whether the salary is cut or not paid at all, he remains willing as long as the policy is aimed at the public interest, the people, the nation, and the state. That stance, he said, is a form of commitment in public service amid potential economic pressures.

Pigai also mentioned that, based on the State Organiser’s Wealth Report (LHKPN), he is the minister with the smallest assets in the current Merah Putih Cabinet. Nevertheless, this does not affect his commitment to carrying out his duties.

He emphasised that since serving as minister, the HAM Ministry has prohibited any form of money giving from officials in its environment as an effort to maintain integrity. That policy continues to be implemented to this day.

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